Cover image via LB Studios/Connect Images/AFP & Chang An/Imaginechina/AFP
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The government is urging private sector employers to adopt more flexible work arrangements as rising energy costs and global uncertainty begin to weigh on businesses and workers
The call follows a recommendation from Prime Minister Datuk Seri Anwar Ibrahim, who encouraged companies to consider measures like working from home (WFH) to ease pressure from the ongoing global energy crunch.
In a statement today, 27 March, the Ministry of Human Resources (KESUMA) said flexible work arrangements (FWA) could help organisations manage costs more efficiently without sacrificing productivity.
The ministry pointed to rising fuel and energy prices, driven in part by ongoing conflict in the Middle East, as a growing burden, especially for employees who rely on daily commutes.
"FWA offers a practical solution that benefits both employers and employees," KESUMA said, adding that it can help optimise resource use while improving work-life balance.
Employers are encouraged to assess what works best for their operations, whether through remote work, flexible hours, shift rotations, or hybrid setups
KESUMA stressed that such arrangements are already supported under amendments to the Employment Act 1955, which came into force on 1 January 2023.
Under Sections 60P and 60Q of the law, employees have the right to apply for flexible work arrangements, covering changes to working hours, days, or workplace.
Importantly, the ministry said companies that implement FWA cannot cut statutory benefits. This includes overtime pay, rest day compensation, public holiday pay, as well as annual leave and sick leave entitlements.
To support employers, KESUMA said agencies like the Department of Labour and Talent Corporation Malaysia are providing guidance, training, and best practice resources.
The Labour Department published a set of FWA implementation guidelines in 2024
The guidelines outline everything from eligibility and application processes to employer and employee responsibilities.
These FWA guidelines contain the following:
- Definition of FWA
- Benefits of Implementing FWA
- Forms of FWA (Flexi-time, Compressed Work Week, etc.)
- Jobs Suitable for FWA Implementation
- Implementation Methods
- FWA Approval & Application Procedures
- Employer & Employee Responsibilities
- Appeals & Complaints
- Cancellation of FWA Approval
- Follow-up Actions
The ministry is urging on companies to take a phased and practical approach, starting with assessing suitability, then gradually introducing flexible work models based on operational needs.
KESUMA said the broader goal is to help businesses stay resilient while ensuring employee welfare is not compromised as Malaysia navigates a more challenging global economic environment.
